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B Palanivelrajan1, A C Kannan2
Assistant Professor MBA, K.L.N. College of Engineering
2
Professor MBA, Pottapalayam, Sivagangai
Abstract- Hotel Industry is a highly competitive industry especially after the introduction of globalization. The success of service providers in the
industry rest on their level of understanding and delivery of services to their customers. The service quality is the non-price weapon at the hands of the
service providers. Hence, the present study focuses on the study of linkage between the service qualities and behavioral intention among the guests in the
hotel industry. The study was conducted among the guests stayed at corporate hotels at Kanniyakumari, Rameshwaram and Madurai. The study
concluded that the value added service quality have a significant impact on behavioral intention among the guests especially through the core, special
service quality and overall customers satisfaction.
Key words: Service quality, Behavioral Intention, Path Analysis, Structural Equation Model.
INTRODUCTION
Tourism is a highly competitive industry, and tourism factor can no longer compete on the basis of cost alone. Quality is a key element
for the competitiveness of the tourism industry. The World Tourism Organization (WTO, 2003), has designed six standards for
tourist product or service. One of the important aspects in the tourism industry is the hotel industry since it provides accommodation
and foods to the tourists. (Gaurav et al., 2010). In order to attract new customers and retain their existing customers in the hotel
industry, effective policies of customers satisfaction and loyalty is highly essential (Tse, 2001). The service quality offered by the
hotels is playing an important role in the determination of the customers satisfaction in hotel industry (Kim and Cha, 2002). These
qualities included safety and security, hygiene, accessibility, transparency, authenticity and harmony (Sharma and Upadhyaya, 2009).
The policies improving the quality of tourism services should be matched with the features of destination and customers expectations
(Domini, 2010).
In a service industry priding itself in its superlative quality of personal touch; naturally the hotels pay a lot of attention to relationship
marketing and customer relationship management. Apart from tangibles, delicious food and beverages, communication, price fairness,
customers orientation etc. the essence of service in hotels comes from warmth and friendly nature of them. The flexibility, going the
extra mile, making impossible things possible, consistency in the delivery of service, personalized service, anticipating guest needs and
the sweet smile of the guest relations executive, the timely greeting of the guard and the doorman, the empathy of the front office
assistants are the important pre requisites for the sources of the hotels. Those who provide customers with quality services can have a
stronger competitive position in todays dynamic market place (Stuant and Tax, 1996; Wong et al., 1999).
The relationship qualities in hotels are having a positive impact on customer retention (De Wulf et al. 2001; Verhoef, 2003). Kin et
al., (2006) was one of the first studies to examine predictors and art comes of relationship quality within the hotel industry. Budhwar
(2005) identified the service quality in hotel is one of the success factors for hotel. Syed et al., (2006) identified the factors leading to
customers satisfaction in hotel industry namely responsiveness of frontline employees, price, food quality and appearance of hotel. The
service providers those who provide customers with quality services can have a stronger competitive position in todays dynamic
This paper is prepared exclusively for International Journal on Business Management and Entrepreneurship [IJBME] which is published by ASDF International, Registered
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18
market place (Kit et al., 2001). The hotel industry is a demanding sector that stresses the provision of high-level customers service
and continuous quality improvement. There has been a pressing need to encourage local consumption and attract the arrival of visitors.
In this context, this paper discusses the identification of quality attributes in hotel industry and its consequences.
Conceptual Framework of the Study
Service Quality Factors in Hotel Industry Operations
Terziovski and Dean (1998) defined quality as the fitness to use and conformance to specification and requirements. Parasuraman et
al., (1990) identified five dimensions of service quality encompasses tangibles, reliability, responsiveness, assurance and empathy.
Gronroos (1990) argues there are six elements in service quality as professionalism and skills, attitudes and behaviour; accessibility and
flexibility, reliability and worthiness; recovery; and reputation and credibility. Shock and stefaneli (1992) advocated four marketing
mix considerations for the design and planning of hotel services. Darley and Gilbert (1985) suggested that the physical dimension of a
business can also influence the degree of success of a business like hotel. The product offering by the hotel plays a determinant role in
the service quality of hotel industry. Monroe (1989) identified that the price of the items on the menu can also greatly
influencecustomers because price has the capability of attracting or repelling them, especially since price functions as an indicator of
quality (Leuis and Shoemapher, 1997). Grewalv et al. (1998) indicated that the price offering for the hotel needs to be in accord with
what the market expects to pay by avoiding negative deviation.
Kin et al. (2006) examined predictors and outcomes of relationship quality with the hotel industry. The measurement developed by
him includes:
a) Physical Environment: Stevens et al., 1995. Garbarino and Johnson, 1999
b) Food Quality: Mattila, 2001 MacLaurin and Mac Laurin (2000)
c) Customer Orientation: Fornell et al., 1996Gustafsson et al., 2005and Bore and Johnson, (2000)
d) Communication Level: Scanlan and McPhail, 2000 Jeyacharan et al., (2005)and (Parsons, 2002).
e) Relationship Benefits: Reynolds and Beally, 1999 Gurinner et al., (1998)
f) Price Fairness: Kin et al., 2006. Oh (2000) Rarraweera and Neely (2003)
In the present study, the included service quality variables related to the hotel have been identified with the help of above said
conceptual framework. In total, 32 variables related to service quality in hotel industry have been noticed and summarized in table 1.
TABLE 1
Variables in Service Quality in Hotels (SQH)
Sl.No
1.
Variables in SQH
Visually attractive building exteriors
Sl.No
17.
Variables in SQH
Knowledgeable staffs
2.
18.
3.
19.
Tasty food
4.
Parking area
20.
5.
21.
Personal relationship
6.
Discount offer
22.
7.
23.
Special treatments
8.
Special deals
24.
9.
25.
10.
26.
11.
27.
Appearance of food
12.
28.
13.
Special discounts
29.
14.
30.
15.
Appropriate illumination
31.
Details on pricing
16.
32.
Overall Customers Satisfaction: Stevens et al., 1995, Syed and Cardoym, 2006, Sheetal and Verma, 2004
Behavioural Intention: (Heller et al., 2003), (Petrick, 2004),(Tian et al., 2002).
Cite this article as: B Palanivelrajan, A C Kannan. Service Quality and Behavioural Intention In Hotel Industry: A Path
Model Analysis. International Journal on Business Management and Entrepreneurship [IJBME] (2015): 17-24. Print.
19
Literature Reviews: Kin and Cha (2002),Clark and Wood (1999)Gustafsson et al., (2005), Parsons (2002), Bhattachariya
and Friedman (2001)
Related Reviews: (Crompton and Willson, 2002),Yan and Uysal (2005),(Balogu, 2001; Mazanec, 2000; and Lee et al.,
1997)Murphy et al., (2000), Oh (2000) and Morasis and Norman (2001)
FIGURE 1
Conceptual Model
Value
addedQualit
y
Core
ServiceQualit
y
Special Service
Quality
Overall
Satisfaction
Behavioural
intention
Cite this article as: B Palanivelrajan, A C Kannan. Service Quality and Behavioural Intention In Hotel Industry: A Path
Model Analysis. International Journal on Business Management and Entrepreneurship [IJBME] (2015): 17-24. Print.
20
Cite this article as: B Palanivelrajan, A C Kannan. Service Quality and Behavioural Intention In Hotel Industry: A Path
Model Analysis. International Journal on Business Management and Entrepreneurship [IJBME] (2015): 17-24. Print.
21
Concepts
Mean
1.
3.5157
Standard
Deviation
0.4786
2.
3.9708
0.5217
3.
3.4865
0.4903
4.
Customer satisfaction
3.2241
0.4886
5.
Behavioural intention
2.8969
0.3967
5
0.2744*
0.3242*
0.3646*
0.2903*
0.3969*
0.3011*
0.3842*
Cite this article as: B Palanivelrajan, A C Kannan. Service Quality and Behavioural Intention In Hotel Industry: A Path
Model Analysis. International Journal on Business Management and Entrepreneurship [IJBME] (2015): 17-24. Print.
22
Outcome Model
Core
ServiceQualit
y
Value
addedQualit
y
Special Service
Quality
Overall
Satisfaction
Behavioural
intention
The value added service quality has a significant positive impact on core service quality ( = 0.8586*), thus supporting H1. Due to
their insignificances on structural co-efficients, however, the hypotheses of value added service quality has no positive effect on special
service quality (H2), overall satisfaction (H3) and behavioural intention (H4) are not supported since their [eta values are not
significant at five per cent level
(2=0.0485; 3=0.1109; and 4 = 0.1017). The core service quality, as hypothesized, has a
significant positive impact on special service quality (5 = 0.8507*), thus supporting H5. Nonetheless, it does not have a significant
impact on overall satisfaction and behavioural intention (6=0.1811; 7=0.1382) respectively. In addition, the special service quality
has a significantly positive effect on overall satisfaction (8=0.7542*), supporting H8 while it does not appear to have a significant
effect on behavioural intention (9=0.1203), not supporting H9. Finally, the overall satisfaction has a significantly a positive effect on
behavioural intentions (10=0.1886), supporting H10). From the results, it is inferred that, an evident path is seen. The appeared path
is: value added service quality Core service quality Special Service Quality ---, Overall satisfaction Behavioural intention. Note that the
value added service quality does not directly but does indirectly influence the behavioural intention through the core and special
service quality and overall satisfaction. This findings confirms the findings of Caruana et al., (2000); and Ching and Dung (2007).
II
CONCLUSIONS
The empirical results of this study provide tenable evidence that the proposed structural equation model designed to consider the
linkage between value added service quality and behavioural intention though the core, special service quality and overall satisfaction is
acceptable. The major findings of the study reveal that there is no direct significant linkage between value added service quality and
behavioural intention which replicates the findings of Dick and Basu (1994); and Flavian et al., (2001). At the same time, the
significant positive of effect the construct is seen on the subsequent constructs developed in all stages of the path resembles the findings
of Iwasaki and Havitz, (1998); Turner and Reisinger (2001).
The major findings of this study have significant managerial implications for policy makers. First of all the path analysis reveals that
there is no significant effect of value added, core and special service quality on the behavioural intention but there is a significant
impact of valued added science quality on core service quality, core service quality on overall satisfaction and overall satisfaction on
behavioural intention. It indicates that the policy makers should understand the logic linkage between the constructs developed in the
present study. It is not enough to concentrate only on value added service quality but also the core and special service quality. All these
qualities should be focused on the guests satisfaction i.e., customer orientation. It is the only possibility to generate favourable
behavioural intention among the guests.
The findings of the study reveal the flow of the critical path in between valued added service quality and behaviour intention. These
are: value added service quality Core service quality special service quality overall satisfaction behavioral intention. This
critical path produces the better result than any other paths. The policy maker are advised to implement their developmental
strategies on the basis of the critical path confirmed by the empirical study.
Directions for Future Research
The findings reported in the present study offer several suggestions for future research. First, research is needed to identity. Apart
from this, the other dimensions like technology and information system quality in hotel industry may be added to examine the service
quality in hotel industry may be added to examine the service quality in hotel industry. Secondly, the future study may focus on the
usefulness of segmenting customers on the basis of their profile. It will be worth while exploring. A future research aimed at the level
of perception and expectation on service quality in hotel industry on the basis of customers demographics which will be valuable from
a service providers view point. Thirdly, a discriminant analysis may be conducted on various types of customers regarding their
Cite this article as: B Palanivelrajan, A C Kannan. Service Quality and Behavioural Intention In Hotel Industry: A Path
Model Analysis. International Journal on Business Management and Entrepreneurship [IJBME] (2015): 17-24. Print.
23
attitude towards hotel industry in future research work. Researcher could cover more service categories and with large data base in
future. The problems in maintaining the service quality in hotel industry alone may be focused in near future as a separate research
work. Finally, the scope of the study may be extended to various tourists centers in India.
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Cite this article as: B Palanivelrajan, A C Kannan. Service Quality and Behavioural Intention In Hotel Industry: A Path
Model Analysis. International Journal on Business Management and Entrepreneurship [IJBME] (2015): 17-24. Print.